'As a financial advisor, I tend to correlate everything I read to us, our lives and how we can ensure that we invest better to make our lives richer'.
The world is going crazy about the Game of Thrones and who wouldn’t- the ups and downs and the twists in the storyline make it a nail biting show. The larger than life characters and sets make it a visual treat.
Now, I am a fan of the show too, but am a bigger book fan. I’ve read all the books and hate to admit, I have even bought some merchandise which I absolutely love.
But, as a financial advisor, I tend to correlate everything I read to our lives and how we can ensure that we invest better to make our lives richer.
So, here are a few famous lines from The Game of Thrones in my “Game of Goals”
“Fear cuts deeper than swords”
Arya Stark’s famous line. Our fear of the unknown is what harms us more than the unknown itself. We are scared to invest in asset classes other than debt (FDs, RDs) and this hurts us because equities are one of the asset classes which give us good returns over the long term. Definitely, somewhere where we should be investing if our horizon is over five years. A part of our portfolio invested in equities gives it the sword to cut inflation which will be almost impossible to beat with debt alone over long tenures. So, don’t be afraid to invest in equities. Choose an advisor who can guide you the right way- how much you should invest and how you should invest.
“Winter is coming”
The famous words of Starks. Your retirement is coming, whether you like it or not; sooner or later; whether planned for or unplanned for. It will come. The idea is to be as prepared for your retirement as you can; so you retire with dignity and can live independently.
“Different roads sometimes lead to the same castle”
Jon Snow’s line to Arya when he’s leaving for the Wall: We can get to our goals with different kinds of portfolios because we will have different risk appetites. One may take a risky route and one a safer route so to speak. If you are taking a safer route by investing more in debt, you might need to invest more and/or you might take longer to get there while the risky journey with equities might be full of ups and downs but you might need to save lesser and/or reach faster.
“When the snows fall and the white winds blow, the lone wolf dies, but the pack survives”
Ned Stark's line to his family. Here, while the normal translation would be United we stand, divided we fall kind of thing; I tend to think of it more like a portfolio that is well diversified might be able to do much better than a lone portfolio of only equity or only debt. The key here is finding your ideal mix.
“Never forget who you are, for surely the world will not. Make it your strength. Then it can never be your weakness.”
Tyrion Lannister to Jon Snow. Now I wouldn’t be a true fan if I didn’t quote Tyrion at least once here. This though I take in the context of risk profiling and designing your portfolio for your own needs. Forget about which is the best scheme right now and forget about what noise is going on around you. Focus on who you are and what you need from your money; when do you need it back, how much ups and downs in your portfolio would you comfortable with. This will then work its way through asset allocation and therefore products in your portfolio. Don’t choose the scheme first, that’s the last step. Knowing yourself is the first step and then work on your strengths and make them stronger.
When you plan a game of thrones, you win or die. When you play a game of goals, you only win.The writer is Chief Operating Officer of International Money Matters